The NASDAQ-listed NTL joins the list of failed telcos, including Global Crossing and Qwest, by making a special Chapter 11 bankruptcy protection filing.
Under the ‘prearranged’ Plan of Reorganisation – agreed to by its lending banks, the majority of its public bondholders, and other preferential stockholders like France Telecom – the company will implement its recapitalization plan as announced last month.
In a statement, the company said the filing would not impact on operating companies in the UK, Ireland or Europe and creditors would still be paid in ‘the ordinary course of business’.
Under the proposed recapitalization plan, approximately £7.28bn in debt will be converted to equity in two reorganized companies – NTL UK and Ireland and NTL Euroco.
In addition NTL has received a commitment of £343m in new financing from certain members of the bondholder group.
More than 11 million homes in the UK are located within NTL’s fibre-optic broadband network, which covers nearly 50% of the UK including, London, Manchester, Nottingham, Oxford, Cambridge, Cardiff, Glasgow and Belfast.
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